A note from Daniel

The most familiar example of a security is corporate stock, like a share of Apple stock. There is a group of people at Apple, including the management team, who might have information that is material to Apple's stock price. These people might know things like the next quarter's earnings, information that could move the stock price. There are also vendors and commercial counterparties that might have material information about Apple's business dealings. Because Apple's stock is freely traded on public markets, anyone can acquire shares of the stock and, in so doing, would be trusting Apple's management team to generate returns. They would also be trusting that their trading counterparties don't have material information that might affect the stock price.

Daniel Read Write Own, page 173 · March 22, 2024 Save to shelf
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